Third party funding (“TPF”) refers to a contractual agreement between a third party, the funder, and a claimant seeking to pursue a cause of action. TPF arrangements, historically motivated by a claimant’s lack of financial resources, are in other jurisdictions now also used more generally to mitigate costs and manage the risk of litigation or arbitration. But what is the position in Hong Kong?
Currently still prohibited in solvent litigation by the common law doctrines of maintenance and champerty and considered to represent an issue of uncertainty in Hong Kong seated arbitrations, a Sub-Committee of the Hong Kong Law Reform Commission has recently recommended that TPF be expressly permitted for arbitrations taking place in Hong Kong and has sought public comment about what, if any, regulation should be imposed in relation to it.
Join us to hear more about the future of TPF in Hong Kong, and whether or not we are indeed entering
a new era.